Rentokil Initial (NYSE:RTO) Shares Gap Up - Should You Buy?

Key Points

• Rentokil Initial shares gapped up, opening at $32.22 vs a prior close of $28.75 and last trading around $32.30 — roughly an 11.5% jump on volume of about 1.09 million shares.
• Analyst views are mixed — Morgan Stanley upgraded to "overweight" and Bank of America raised the stock to "buy" with a $34 target while Rothschild & Co cut to "strong sell"; MarketBeat's consensus remains a Hold with an average target of $34.00.
• Rentokil is a global pest‑control, hygiene and workwear services provider; its 50‑day and 200‑day simple moving averages are $31.27 and $28.25 respectively, and institutions own about 9.91% of the shares.

Rentokil Initial PLC (NYSE:RTO - Get Free Report)'s share price gapped up before the market opened on Thursday . The stock had previously closed at $28.75, but opened at $32.22. Rentokil Initial shares last traded at $32.30, with a volume of 1,087,619 shares changing hands.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on RTO. Morgan Stanley upgraded shares of Rentokil Initial from an "equal weight" rating to an "overweight" rating in a research note on Tuesday, January 6th. Weiss Ratings restated a "hold (c-)" rating on shares of Rentokil Initial in a research note on Thursday, January 22nd. Rothschild & Co Redburn lowered Rentokil Initial from a "hold" rating to a "strong sell" rating in a report on Friday, January 30th. JPMorgan Chase & Co. restated an "overweight" rating on shares of Rentokil Initial in a research report on Friday, November 21st. Finally, Bank of America raised Rentokil Initial from a "neutral" rating to a "buy" rating and set a $34.00 target price for the company in a research report on Thursday, December 18th. One analyst has rated the stock with a Strong Buy rating, four have assigned a Buy rating, three have given a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Hold" and an average target price of $34.00.

Rentokil Initial Trading Up 11.5%

The business has a 50 day simple moving average of $31.27 and a 200 day simple moving average of $28.25. The company has a debt-to-equity ratio of 0.79, a current ratio of 1.12 and a quick ratio of 1.03.

Institutional Trading of Rentokil Initial

Several hedge funds have recently modified their holdings of the stock. Pullen Investment Management LLC grew its holdings in shares of Rentokil Initial by 0.7% in the 3rd quarter. Pullen Investment Management LLC now owns 48,758 shares of the company's stock valued at $1,231,000 after acquiring an additional 359 shares in the last quarter. Vestmark Advisory Solutions Inc. increased its holdings in shares of Rentokil Initial by 2.0% during the 3rd quarter. Vestmark Advisory Solutions Inc. now owns 21,228 shares of the company's stock worth $536,000 after acquiring an additional 414 shares during the last quarter. Evergreen Capital Management LLC raised its stake in Rentokil Initial by 5.4% in the 4th quarter. Evergreen Capital Management LLC now owns 10,425 shares of the company's stock valued at $307,000 after acquiring an additional 531 shares during the period. GAMMA Investing LLC boosted its position in Rentokil Initial by 76.5% during the fourth quarter. GAMMA Investing LLC now owns 1,232 shares of the company's stock worth $36,000 after purchasing an additional 534 shares during the period. Finally, Patriot Financial Group Insurance Agency LLC increased its holdings in shares of Rentokil Initial by 2.6% in the fourth quarter. Patriot Financial Group Insurance Agency LLC now owns 24,151 shares of the company's stock valued at $711,000 after purchasing an additional 619 shares during the last quarter. 9.91% of the stock is owned by institutional investors.

Rentokil Initial Company Profile

Rentokil Initial PLC is a global business services company specializing in pest control, hygiene and workwear services. Headquartered in Crawley, West Sussex, United Kingdom, the company delivers outsourced solutions designed to protect people, preserve assets and enhance workplaces for both commercial and residential customers.

Under the Rentokil Pest Control brand, the company offers services ranging from routine inspections and treatment of insects, rodents and birds to specialised programmes for food manufacturing and healthcare environments.

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